The Rate of Return KPI measures the rate at which shipped items are returned to you. The key to this metric is providing a breakdown for the reasons why items are returned so you can identify trends and reduce your rate of return ratio by addressing issues at their source. Consider coupling this KPI with Cash Conversion Cycle KPI and perfect order rate KPI.
Monitoring Supply Chain KPIs on a Dashboard
Once you have established benchmarks and targets for Rate of Return, you’ll want to establish processes for monitoring this and other supply chain KPIs. Dashboards can be critical in this regard. Read more
(Total Items Returned) / (Total Items Shipped)